Congresswoman Beatty's Amendment Included in Passage of H.R. 1341

Press Release

Congresswoman Beatty (OH-03) released the following statement on the passage of H.R. 1341, the Financial Competitive Act of 2013.

Today, Congresswoman Joyce Beatty (OH-3) voted in favor of the Financial Competitive Act of 2013, H.R. 1341. The bill, which passed on the House floor by a margin of 353 -- 24, included language inserted by the Congresswoman as an amendment during the markup of the bill. This language is aimed at preserving the stability of U.S. capital markets and the amendment was unanimously adopted by the Financial Services Committee.

The Financial Competitive Act would require the Financial Stability Oversight Council (FSOC) to conduct a study and produce a report of the likely effects of the differences between U.S. and foreign jurisdictions when determining the necessary capital reserves needed to conduct derivatives trading; otherwise, known as the derivatives credit valuation adjustment.

As introduced, it was not clear that the FSOC was required to consider risks during times of stress which could threaten U.S. financial market stability. Therefore, the amendment ensures that in its final report to Congress, FSOC balances the need for harmonizing banking regulations with its overarching objective of preserving stability in U.S. capital markets.

"The amendment will allow FSOC to both evaluate the competitiveness of U.S. financial institutions and ensure U.S. market stability if foreign regulators elect to reduce capital reserve thresholds; thus, loosening regulations."

"By adding this counterbalance to the study, it will allow FSOC and Congress to have all the facts needed to ensure that we are fully competitive in global markets while maintaining and preserving the health of U.S. capital markets engaged in complex global trading activities."

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